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[Federal Register Volume 89, Number 247 (Thursday, December 26, 2024)]
[Proposed Rules]
[Pages 104941-104943]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-30534]

[[Page 104941]]

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ENVIRONMENTAL PROTECTION AGENCY

 40 CFR Part 52

[EPA-R03-OAR-2024-0512; FRL-12099-01-R3]

Approval and Promulgation of Air Quality Implementation Plans; 
Maryland; Nitrogen Oxides Ozone Season Emissions Caps for Non-Trading 
Large Nitrogen Oxides Units; Amendments

AGENCY: Environmental Protection Agency (EPA).

ACTION: Proposed rule.

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SUMMARY: The Environmental Protection Agency (EPA) is proposing to 
approve a State implementation plan (SIP) revision submitted by the 
State of Maryland. This revision (Maryland Submittal #24-01) pertains 
to the re-allocation of nitrogen oxides (NOX) ozone season 
emission caps for large non-electric generating units (non-EGUs, 
affected units). The amendment also updates a cross reference to the 
Cross State Air Pollution Rule (CSAPR). This action is being taken 
under the Clean Air Act (CAA).

DATES: Written comments must be received on or before January 27, 2025.

ADDRESSES: Submit your comments, identified by Docket ID No. EPA-R03-
OAR-2024-0512 at www.regulations.gov, or via email to 
[email protected]. For comments submitted at Regulations.gov, follow 
the online instructions for submitting comments. Once submitted, 
comments cannot be edited or removed from Regulations.gov. For either 
manner of submission, EPA may publish any comment received to its 
public docket. Do not submit electronically any information you 
consider to be confidential business information (CBI) or other 
information whose disclosure is restricted by statute. Multimedia 
submissions (audio, video, etc.) must be accompanied by a written 
comment. The written comment is considered the official comment and 
should include discussion of all points you wish to make. EPA will 
generally not consider comments or comment contents located outside of 
the primary submission (i.e. on the web, cloud, or other file sharing 
system). For additional submission methods, please contact the person 
identified in the FOR FURTHER INFORMATION CONTACT section. For the full 
EPA public comment policy, information about CBI or multimedia 
submissions, and general guidance on making effective comments, please 
visit www.epa.gov/dockets/commenting-epa-dockets.

FOR FURTHER INFORMATION CONTACT: Amber Iglesias, Planning & 
Implementation Branch (3AD30), Air & Radiation Division, U.S. 
Environmental Protection Agency, Region III, 1600 John F. Kennedy 
Boulevard, Philadelphia, Pennsylvania 19103. The telephone number is 
(202) 564-3175. Ms. Iglesias can also be reached via electronic mail at 
[email protected].

SUPPLEMENTARY INFORMATION: On June 10, 2024, the State of Maryland, 
through the Maryland Department of the Environment (MDE), submitted for 
approval into the Maryland SIP amendments to the Code of Maryland 
Regulation (COMAR) 26.11.40-NOX Ozone Season Emission Caps for Non-
Trading Large NOX Units to EPA.

I. Background

    On October 27, 1998 (63 FR 57356), EPA finalized the ``Finding of 
Significant Contribution and Rulemaking for Certain States in the Ozone 
Transport Assessment Group Region for Purposes of Reducing Regional 
Transport of Ozone''--commonly called the NOX SIP Call. The 
NOX SIP Call, issued pursuant to section 110 of the CAA, was 
designed to mitigate significant transport of NOX one of the 
precursors of ozone. EPA developed the NOX Budget Trading 
Program, an allowance trading program that States could adopt to meet 
their obligations under the NOX SIP Call. The NOX 
Budget Trading Program allowed electric generating units (EGUs) greater 
than 25 megawatts and industrial non-electric generating units, such as 
boilers and turbines, with a rated heat input greater than 250 million 
British thermal units per hour (MMBtu/hr), referred to as ``large non-
EGUs,'' to participate in a regional NOX cap and trade 
program. Of specific relevance to this action, the NOX SIP 
Call also established specific reduction requirements for other non-
EGUs, including cement kilns and stationary internal combustion (IC) 
engines. On January 10, 2001 (66 FR 1866), EPA approved into the 
Maryland SIP two Maryland regulations, COMAR 26.11.29--NOX Reduction 
and Trading Program, and COMAR 26.11.30--Policies and Procedures 
Relating to Maryland's NOX Reduction and Trading Program, to meet the 
requirements of the NOX SIP Call. Under the approved trading 
program, large EGUs and large non-EGUs in Maryland participated in a 
regional cap and trade program that was administered by EPA.
    On May 12, 2005 (70 FR 25162), EPA promulgated the Clean Air 
Interstate Rule (CAIR), to address transported emissions that 
significantly contributed to downwind States' nonattainment and 
maintenance of the 1997 ozone and fine particulate matter 
(PM2.5) National Ambient Air Quality Standards (NAAQS). CAIR 
required 28 States, including Maryland, to reduce emissions of 
NOX and sulfur dioxide (SO2), which are 
precursors to ozone and PM2.5. Under CAIR, EPA developed 
separate cap and trade programs for annual NOX, ozone season 
NOX, and annual SO2 emissions. On April 28, 2006 
(71 FR 25328), EPA also promulgated Federal implementation plans (FIPs) 
requiring the EGUs in each affected State, but not large non-EGUs, to 
participate in the CAIR trading programs. Subsequent to these actions, 
States needed to assess their NOX SIP Call requirements and 
take other regulatory action as necessary to ensure that their 
obligations for the large non-EGUs continued to be met either through 
submission of a CAIR SIP or other NOX regulation. States 
could comply with the requirements of CAIR by either remaining on the 
FIP, which applied only to EGUs, or by submitting a CAIR SIP revision 
that included EGUs as trading sources and the NOX SIP Call 
covered non-EGUs either as trading sources, or subject to non-trading 
NOX control regulations. EPA discontinued administration of 
the NOX Budget Trading Program in 2009 upon the start of the 
CAIR trading programs.\1\ The NOX SIP Call requirements 
continued to apply, however, and EGUs that were formerly trading under 
the NOX Budget Trading Program continued to meet their 
NOX SIP Call requirements under the generally more stringent 
requirements of the CAIR ozone season trading program. EPA has 
implementing regulations for the NOX SIP Call at 40 Code of 
Federal Regulations (CFR) 51.121.
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    \1\ CAIR was subsequently vacated and remanded. See North 
Carolina v. EPA, 531 F.3d 896 (D.C. Cir. 2008), modified by 550 F.3d 
1176 (remanding CAIR). CAIR was replaced with the Cross-State Air 
Pollution Rule, or CSAPR (76 FR 48208, August 8, 2011), which, after 
legal challenges, was implemented starting in January 2015. The 
NOX Ozone Season Trading Program under CSAPR was replaced 
in Maryland and most other States by a new trading program for ozone 
season NOX under the CSAPR Update rule in January 2017 
(81 FR 74504, October 26, 2016).
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    In Maryland, Luke Paper Mill (formerly the Westvaco pulp and paper 
mill) had the only non-EGUs sources that had been covered under the 
NOX SIP Call and participated in the NOX Budget 
Trading Program. When the CAIR NOX Ozone Season trading 
program replaced the NOX Budget Trading Program, Maryland 
adopted the

[[Page 104942]]

CAIR program as it applied to large EGUs, but chose not to include the 
non-EGU sources at Luke as participants in the CAIR NOX 
Ozone Season trading program.\2\ Instead, in 2010, Maryland adopted 
COMAR 26.11.14.07--Control of Emissions from Kraft Pulp Mills, which, 
among other requirements, included provisions that address the 
NOX SIP Call non-EGU requirements in Maryland through a 
NOX ozone season tonnage cap of 947 tons for the Luke non-
EGU sources and monitoring, recordkeeping, and reporting in accordance 
with 40 CFR part 75. EPA conditionally approved COMAR 26.11.14.07 into 
the Maryland SIP on August 30, 2016 (81 FR 59486) and took final 
approval on July 17, 2017 (82 FR 32641).
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    \2\ CAIR was superseded upon implementation of the CSAPR 
program. Maryland rescinded its CAIR regulation (COMAR 26.11.28) and 
submitted a SIP revision to EPA that sought removal of the 
regulation in its entirety from the approved Maryland SIP. On July 
17, 2017 (82 FR 32641), EPA approved the SIP revision removing the 
CAIR regulation from Maryland's SIP.
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    In October 2018, Maryland adopted a COMAR 26.11.40--NOX Ozone 
Season Emission Caps for Non-Trading Large NOX Units. This regulation 
established NOX ozone season tonnage caps and NOX 
monitoring requirements for large non-EGUs in the State that were not 
covered under the CSAPR NOX Ozone Season Group 2 Trading 
Program. The purpose of COMAR 26.11.40 is to meet requirements of the 
NOX SIP Call. NOX emissions caps that were 
specified for non-EGUs located at four facilities: American Sugar 
Refining, Dominion Energy Cove Point LNG, Luke Paper Mill, and the 
National Institutes of Health. A portion of the Statewide cap is set 
aside for new units or modified existing units that may become subject 
to the NOX SIP Call in the future. The NOX annual 
emissions cap for Maryland established for the NOX SIP Call 
is 1013 tons per year of NOX, as established by EPA in 40 
CFR part 97, subpart E, appendix C. This regulation also requires 40 
CFR part 75, subpart H monitoring of NOX emissions at non-
EGUs in accordance with 40 CFR 51.121(i)(4). EPA approved the SIP 
revision that included the new COMAR 26.11.40 in October 2018. On June 
30, 2019, Luke Paper Mill was shut down by its owner, Verso, and 
surrendered all of its CAA operating permits for the facility to 
Maryland on May 8, 2020.

II. Summary of SIP Revision and EPA Analysis

    On June 10, 2024, Maryland submitted for inclusion in the Maryland 
SIP regulation COMAR 26.11.40--NOX Ozone Season Emission Caps for Non-
trading Large NOX Units. The revisions to sections .02 and .03 of COMAR 
26.11.40 reallocate NOX ozone season emission caps from 
affected source that have shutdown to new or modified SIP Call covered 
non-EGUs and in addition updates it's regulatory cross-reference of the 
Federal ozone season trading programs to automatically incorporate by 
reference any future changes to those programs.
    Section .02 lists the currently affected non-EGUs meeting the 
definition of ``non-trading large NOX unit'' in table 1 of 
this document and includes a provision that any new unit installed 
after May 1, 2018, or an existing unit that is modified such that it 
meets the definition of a large non-EGU, will become subject to the 
requirements of COMAR 26.11.40. Section .02 updates the way the State 
references the EPA's CSAPR Rule and removes Luke Paper Mill as an 
affected source. Prior to the update to section .02 of COMAR 26.11.40 
the State referred to the CSAPR Rule that was in effect in 2018, ``the 
Federal Cross State Air Pollution Rule NOX Ozone Season 
Group 2 Trading Program established under 40 CFR part 97, subpart 
EEEEE.'' In 2019, EPA updated the CSAPR Rule and created the CSAPR 
NOX Group 3 Trading Program. In this submission, the State 
of Maryland updates the CSAPR reference in section .02 COMAR 26.11.40 
to a more generic trading program reference that will incorporate 
future changes in the rule. The updated language in COMAR 26.11.40.02 
refers to ``a Federal trading program for ozone season emissions of 
NOX established under 40 CFR part 97 to address interstate 
transport of ozone and NOX in accordance with 40 CFR 
52.38(b), or a State trading program for ozone season emissions of 
NOX approved by the EPA Administrator as meeting the 
requirements of 40 CFR 52.38(b).''
    Section .03 of COMAR 26.11.40 establishes the NOX annual 
tonnage caps for each source. This submission removes the 
NOX ozone season emission caps from the shutdown Luke Paper 
Mill. Prior to the amendments of section .02 of COMAR 26.11.40, the 
State of Maryland allocated a cap of 656 tons to of NOX Luke 
Paper Mill with 96 tons to set aside for new units or modified existing 
units. This submission reallocates the 656-ton cap from Luke Paper Mill 
to the set-aside cap for new and modified sources giving the set-aside 
a new cap of 752 tons of NOX. The total of all sources in 
the State, which can be seen in the table below, remains at the cap of 
1013 tons of NOX and is consistent with the portion of the 
overall Maryland NOX Budget Trading Program budget for large 
non-EGUs.

            Table 1--MD Large Non EGU O3 Season Emission Caps
------------------------------------------------------------------------
                                                        NOX ozone season
            Facility                      Unit             cap (tons)
------------------------------------------------------------------------
American Sugar Refining.........  C6.................                 24
Dominion Energy Cove Point LNG..  Frame 5-1 (Turbine                 214
                                   S009), Frame 5-2
                                   (Turbine S010),
                                   Frame 7-A, Frame 7-
                                   B, Aux. A, Aux B.
National Institutes of Health...  5-1156.............                 23
New unit set-aside..............  ...................                752
                                 ---------------------------------------
    Total.......................  ...................              1,013
------------------------------------------------------------------------

    EPA finds that this June 2024 SIP submittal meets Maryland's 
NOX SIP Call obligations (including requirements in CAA 
section 110 and 40 CFR 51.121) for non-EGUs because the revisions to 
regulation COMAR 24.11.40 removes Luke Paper Mill as an affected source 
and reallocates the NOX emission cap for that facility to a 
set aside for new and modified sources. This reallocation does not 
change or alter the specified State-wide ozone season NOX 
emissions cap of 1013 tons which is consistent with the portion of the 
overall Maryland NOX emissions budget under the 
NOX Budget Trading Program attributable to non-EGUs. This 
revision does not change the 40 CFR part 75 monitoring,

[[Page 104943]]

recordkeeping and reporting requirements of the original 2018 
submission. Finally, the changes to the CSAPR reference are to ensure 
that the State is using a term that will be an applicable reference in 
the State's SIP if the EPA is to update the rule in the future.
    The June 10, 2024 Maryland SIP submittal does not result in 
increased NOX emissions, and therefore has no impact on any 
requirements related to attainment, reasonable further progress, or any 
other NAAQS requirements under the CAA. The submittal therefore meets 
section 110(l) of the CAA.

III. Proposed Action

    EPA's review of this material indicates that Maryland's June 10, 
2024 SIP revision submittal (Maryland SIP Revision #24-01) is 
approvable in accordance with CAA section 110. EPA is proposing to 
approve the Maryland SIP revision that reallocates the NOX 
ozone season emission cap from Luke Paper Mill to the new source set-
aside and updates its regulatory cross-reference of the Federal ozone 
season trading programs to automatically incorporate by reference any 
future changes to those programs EPA is soliciting public comments on 
the issues discussed in this document. These comments will be 
considered before taking final action.

IV. Incorporation by Reference

    In this document, EPA is proposing to include in a final EPA rule 
regulatory text that includes incorporation by reference. In accordance 
with requirements of 1 CFR 51.5, EPA is proposing to incorporate by 
reference the revised Maryland regulation COMAR 26.11.40.02 and the 
revised COMAR 26.11.40.03, as described in section II of this preamble. 
EPA has made, and will continue to make, these materials generally 
available through www.regulations.gov and at the EPA Region III Office 
(please contact the person identified in the For Further Information 
Contact section of this preamble for more information).

V. Statutory and Executive Order Reviews

    Under the CAA, the Administrator is required to approve a SIP 
submission that complies with the provisions of the CAA and applicable 
Federal regulations. 42 U.S.C. 7410(k); 40 CFR 52.02(a). Thus, in 
reviewing SIP submissions, EPA's role is to approve State choices, 
provided that they meet the criteria of the CAA. Accordingly, this 
action merely approves State law as meeting Federal requirements and 
does not impose additional requirements beyond those imposed by State 
law. For that reason, this proposed action:
     Is not a significant regulatory action subject to review 
by the Office of Management and Budget under Executive Orders 12866 (58 
FR 51735, October 4, 1993) and 13563 (76 FR 3821, January 21, 2011);
     Does not impose an information collection burden under the 
provisions of the Paperwork Reduction Act (44 U.S.C. 3501 et seq.);
     Is certified as not having a significant economic impact 
on a substantial number of small entities under the Regulatory 
Flexibility Act (5 U.S.C. 601 et seq.);
     Does not contain any unfunded mandate or significantly or 
uniquely affect small governments, as described in the Unfunded 
Mandates Reform Act of 1995 (Pub. L. 104-4);
     Does not have federalism implications as specified in 
Executive Order 13132 (64 FR 43255, August 10, 1999);
     Is not an economically significant regulatory action based 
on health or safety risks subject to Executive Order 13045 (62 FR 
19885, April 23, 1997);
     Is not a significant regulatory action subject to 
Executive Order 13211 (66 FR 28355, May 22, 2001); and
     Is not subject to requirements of Section 12(d) of the 
National Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272 
note) because application of those requirements would be inconsistent 
with the Clean Air Act;
    Executive Order 12898 (Federal Actions to Address Environmental 
Justice in Minority Populations and Low-Income Populations, 59 FR 7629, 
February 16, 1994) directs Federal agencies to identify and address 
``disproportionately high and adverse human health or environmental 
effects'' of their actions on minority populations and low-income 
populations to the greatest extent practicable and permitted by law. 
EPA defines environmental justice (EJ) as ``the fair treatment and 
meaningful involvement of all people regardless of race, color, 
national origin, or income with respect to the development, 
implementation, and enforcement of environmental laws, regulations, and 
policies.'' EPA further defines the term fair treatment to mean that 
``no group of people should bear a disproportionate burden of 
environmental harms and risks, including those resulting from the 
negative environmental consequences of industrial, governmental, and 
commercial operations or programs and policies.''
    The air agency did not evaluate environmental justice 
considerations as part of its SIP submittal; the CAA and applicable 
implementing regulations neither prohibit nor require such an 
evaluation. EPA did not perform an EJ analysis and did not consider EJ 
in this action. Consideration of EJ is not required as part of this 
action, and there is no information in the record inconsistent with the 
stated goal of E.O. 12898 of achieving environmental justice for people 
of color, low-income populations, and Indigenous peoples.
    In addition, this proposed rulemaking, that amends Maryland's 
NOX Ozone Season Emissions Caps for Non-Trading Large 
NOX Units, does not have Tribal implications as specified by 
Executive Order 13175 (65 FR 67249, November 9, 2000), because the SIP 
is not approved to apply in Indian country located in the State, and 
EPA notes that it will not impose substantial direct costs on Tribal 
governments or preempt Tribal law.

List of Subjects in 40 CFR Part 52

    Environmental protection, Air pollution control, Incorporation by 
reference, Nitrogen dioxide, Ozone, Reporting and recordkeeping 
requirements.

Catherine A. Libertz,
Acting Regional Administrator, Region III.
[FR Doc. 2024-30534 Filed 12-23-24; 8:45 am]
BILLING CODE 6560-50-P
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